401(k) Savings Plan
VMware’s 401(k) Savings Plan helps you set aside money for the future to help you meet your retirement goals.
Enrolling in Your 401(k)
You are immediately eligible to enroll in the VMware 401(k) Plan at 401k.com. New hires to VMware will be automatically enrolled in the plan at 6%, approximately 30 days after your hire date; Rehires must actively enroll to participate.
Don’t forget that if you participated in another employer’s plan during the calendar year, you will need to report your year-to-date contribution amounts to help prevent you from exceeding the IRS limits for the calendar year. To report your YTD contributions, send an email to email@example.com.
You can contribute from 1% to 90% of your eligible compensation (base salary, bonuses and commission) up to IRS limits. You can update your contributions at any time on the Fidelity website. Changes usually take 1-2 pay periods before showing up on your paycheck.
The VMware Plan offers contribution options of pretax, Roth, or after-tax. Catch-up contributions may also be made on a pretax or Roth basis for those age 50 and older.
|Funds Taxed When Contributed||No||Yes||Yes||No|
|Contributions Taxed When Distributed||Yes||No1||No||Yes|
|Earnings Taxed When Distributed||Yes||No1||Yes||Yes|
1 A distribution from a Roth 401(k) is tax‐free and penalty‐free, provided the five‐year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability, or death.
2021 IRS Limits
- Pretax & Roth: $19,500
- Pretax/Roth Catch-up (Age 50+): additional $6,500
- Total IRTotal IRS Contribution Limit (pretax, Roth, after-tax & employer match): $58,000 or $64,500 for catch-up eligible. VMware After-Tax contributions limited to $29,500 in 2021.
VMware provides a dollar-for-dollar match up to 6% of your eligible compensation. The quarterly maximum for the match is $2,250, up to $9,000 annually. You are immediately vested in your contribution as well as VMware’s matching contributions. In order to receive the Company match, you will need to defer pre-tax or via Roth 401(k) contributions. After-tax & Catch-up contributions are not eligible for Company matching.
VMware will true-up eligible employees following each Plan year. In order to receive the end-of-year true-up, you must be an eligible VMware employee at the end of the Plan year (December 31).
For calendar year 2020, the VMware company match was suspended during Q3 (July 1 – September 30). Effective October 1, 2020, VMware will reinstate the company match to the 401(k) plan. For additional information on this change, please refer to the FAQ document.
The 401(k) Savings Plan offers several choices of funds, ranging from money market accounts and bond funds to growth stock funds, including a brokerage option. You may allocate your contributions in any way you want among the available investment options and change them at any time. To manage your investments, log on to the Fidelity website.
Withdrawals & Loans
You may begin taking money from the plan any time after age 59½ or when you terminate employment. If you retire, you must begin receiving money from the plan no later than the 1st of April after the year in which you reach age 70½.
You may also be eligible to initiate a loan or hardship withdrawal on your account. For more information, call Fidelity Investments at 1-800-835-5095.
Naming a Beneficiary
When you enroll in the plan, you must name a beneficiary to receive your plan account balance in the event of your death. You can update your beneficiary at any time on the Fidelity website.
For more information on VMware’s 401(k) Savings Plan, please refer to the Summary Plan Description (SPD).
ASK HR [VMware network access required]
Phone: 1-888-VMWARE8, option ‘US Benefits’
Internal Phone: ext. 29200
Fidelity Roth In Plan Conversion FAQ [VMware network access required]